Best 12-Month CD Rates as of October 22, 2025: Up to 4.20%

Certificates of deposit (CDs) remain one of the most reliable short-term savings tools, especially for those looking for guaranteed returns as interest rates begin to stabilize. As of October 22, 2025the best CD prices arrive for 12 months Up to 4.20% APY (annual return), with many banks and credit unions still offering returns well above the national average of 1.68%According to Federal Deposit Insurance Corporation (FDIC)..

CDs lock in your interest rate for a specified period, providing peace of mind even as the Federal Reserve prepares further rate adjustments. If you’re looking to earn a predictable return over the next year, these are the best CD rates available today.

💰 Today’s best 12-month CD ratesAt a glance

Here are the best savings account rates at banks and credit unions today:

1. Credit One Bank –Credit One Bank offers a whopping 4.20% APY CD, but requires a minimum deposit of $100,000 to open.

2. Allied Credit Union –Alliant Credit Union offers short- and long-term CDs with competitive APYs. Now you can have 4.10% APY on 12-month CD option! Read our full Alliant Credit Union review.

3. Community saving –This Ohio-based bank currently offers 4.00% APY on a 12-month CD with a minimum of just $1,000.

4. Seattle Bank –Seattle Bank currently offers a 12-month CD at 4.00% APY with a minimum deposit of just $1,000.

5. Barclays Bank–Barclays offers short- and long-term CDs with competitive APYs. Now you can have 3.80% APY on 12-month CD option! Read our full Barclays review here.

You can find a complete list of the best 12-month CDs here >>

How do 12 month CDs work

A 12-month certificate of deposit pays a fixed interest rate for one year in exchange for keeping your money deposited until maturity. If you withdraw early, the bank charges a penalty – usually 90 days of interest.

CDs attract savers who prefer guaranteed, short-term returns. While high-yield savings accounts offer flexibility, CDs can lock in a higher fixed return for a specified period, which can be beneficial if rates are expected to decline.

For example, a $25,000 CD at 4.00% APY would earn nearly $1,000 in one year, compared to about $420 based on today’s national 12-month average CD rate.

What to know before opening a CD

Certificates of deposit work differently than savings accounts. Make sure you understand what you’re getting:

• Short term goals: Perfect for saving for tuition, a wedding, or a down payment on a house within a year.
• Price protection: The CD locks your APY, so you’re insulated from price cuts.
• Ladder strategy: Pair a 12-month CD with longer terms (24 or 36 months) to get higher rates while maintaining liquidity.
• safety: FDIC or NCUA insurance protects up to US$250,000 per depositor and per institution.

Before opening an account, make sure you understand all the terms:

• Minimum deposit: Some banks require $1,000 or more to open.
• Withdrawal conditions: Review penalties before committing funds.
• Renewal Policy: Many CDs automatically renew at maturity unless you cancel the subscription.
• Price guarantees: Confirm whether your rate is locked at the time of placing your order or financing.
• Online access: Ensure that the bank allows easy transfers and electronic account statements.

How we track and check prices

At The College Investor, our editorial team reviews CD rates daily from more than 30 banks and credit unions nationwide. We confirm each APY directly through official pricing disclosures and regulatory filings.

Only FDIC or NCUA insured institutions available to US consumers are included.

Our rankings are editorially independent—compensation does not influence placement. Although we may earn a referral fee when you open an account through some links, our reviews and recommendations are based solely on revenue, accessibility, and overall customer experience.

Frequently asked questions

Are 12-month CDs safe?

Yes. CDs are federally insured up to $250,000 per depositor and per institution.

Can I withdraw my money early?

Yes, but you will lose some interest, usually three months’ worth.

Are CD profits taxable?

Yes. Interest earned is subject to federal income tax and, in some states, state tax.

What happens when a CD matures?

You will usually have a grace period of 7-10 days to withdraw or replenish your funds.

Is now a good time to open a CD?

Prices remain near cycle highs, so locking in short-term CDs may make sense ahead of potential cuts.